Banks everywhere are offering a rate of 5%. You have just won the $1,000,000 lottery and they are offering you four options to receive your winnings:
Present Value
$1,000,000 in cash right now ___________
Annual checks of $75,000 for 20 years ___________
$7,000 checks monthly for 20 years ___________
$1500 checks weekly for 20 years ___________
What is the present value of each option?
Which option will give you the greatest present value? I choose ______